I tried so hard to pay off my credit card at the end of the month but it does seems harder and harder everyday since we tends to spend too much and it's extremely easy to swipe that card then worry about it later. Our expenses increase significantly because the kids are getting older too. Oh yeah, last month was xmas... Why can't all holidays be like Thanksgiving where you get to see families and friends instead of buying junks that noone needs.

What's monthly credit card charge?? Our is around ~$1500.00-$2000.00

enuff

Enuff I think most of the early retirees use charge cards pretty extensively, although there are exception like W2R. My charge cards are also in the $1500 month range, because I charge everything over $10. However, I think one characteristic that virtually all of us early retiree share is that we almost never incur finance charges on our credit cards. Paying off the credit cards balances at the end of the month is automatic.

If you are finding that you are having trouble paying off your card balances at the end of the month, I'd highly advise to stop using cards and pay cash instead.

There are many paths to an early retirement. However there is one sure one of never seeing it and that is pay 20% interest on stuff you don't need.

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I recently have been watching CNBC Till Debt do us Part, which I find to be much better than Suze Orman and even better than Dave Ramsey.

Gail, the host, puts the couples budget in cash in various jars. So while I agree that budget is absolutely necessary, making a budget is relatively easy sticking to it is hard. I think credit cards are the biggest budget busting device in the world.

Enuff I think most of the early retirees use charge cards pretty extensively, although there are exception like W2R. My charge cards are also in the $1500 month range, because I charge everything over $10. However, I think one characteristic that virtually all of us early retiree share is that we almost never incur finance charges on our credit cards. Paying off the credit cards balances at the end of the month is automatic.

If you are finding that you are having trouble paying off your card balances at the end of the month, I'd highly advise to stop using cards and pay cash instead.

There are many paths to an early retirement. However there is one sure one of never seeing it and that is pay 20% interest on stuff you don't need.

I am an exception, too, using my CC about 5 times per year and my debit card maybe once a year. Anything under $50 (and some things over $50) I pay cash. But I surely agree with everying else you wrote.

I also watched some of that "Till Death Do Us Part" show recently. That's one pretty sad lot of people there and how bad their spending practices are.

I write only 1-3 checks per month on average, with most of my bills paid via automatic electronic payment for the last 10-15 years. My dividend income deposits are made the same way so most of my budget is on auto-pilot.

I recently have been watching CNBC Till Debt do us Part, which I find to be much better than Suze Orman and even better than Dave Ramsey.

Gail, the host, puts the couples budget in cash in various jars. So while I agree that budget is absolutely necessary, making a budget is relatively easy sticking to it is hard. I think credit cards are the biggest budget busting device in the world.

I like that show, too.

One thing's for sure. As the saying goes: If you do what you always did, you'll get what you always got. She really changes how these couples handle money and budgeting, and this is very helpful to them.

__________________Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

Charge most everything I can - between $3-$4 K/month. pay in full each month and have never had a late payment or fees. Have been doing this since the reward system started, (If memory serves it started with gasoline as the "payback" and only latter evolved to cash, airline miles etc). We follow a strict budget so there has never really been a problem of purchases getting away from us but I can certainly see the value of a debit card or cash if impulse purchases are a problem.

I tried so hard to pay off my credit card at the end of the month but it does seems harder and harder everyday since we tends to spend too much and it's extremely easy to swipe that card then worry about it later.

That's why merchants love credit cards so much - it doesn't "feel" like spending money. I dunno about the accuracy, but I've repeatedly seen the number that shoppers who use credit cards exclusively spend 20% more than cash spenders.

We use a mix of cash, checks and credit cards. DW keeps a spreadsheet in which we record every cc expenditure, predicted utilities for this and the next month and of course income. It's just our way of making sure that the "left hand knows what the right hand is doing" because we do not like financial surprises. We pay the ccs off in full every month and when the outstanding balance approaches what we can pay in full without taking money out of savings, spending stops. Generally, individual spending under $100 we "just do" and anything over that gets at least minimal discussion/acknowledgment.

Funds do not come out of savings without extensive discussion.

Monthly cc bills are usually between $200-$500/month, although we'll charge some expensive items like furniture for the consumer protections that cc offer.

I use an Amex cash rebate card for nearly everyhing, pay it off in full each month. My cash rebate has been averaging $750/year- this year it will be over $1000 with all the new home and moving expenses.

For December 09, $2700, which is a higher figure than normal for a 2 adult household. December serves as a good high end data point for monthly spending patterns.
I did my winter food stocking and of course some holiday/entertaining related shopping in Dec.
Everything but the recurring monthly bills (utilities, trash, insurance, etc) goes on the cash back card. Zero balance every month.

__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney

I use an Amex cash rebate card for nearly everyhing, pay it off in full each month. My cash rebate has been averaging $750/year- this year it will be over $1000 with all the new home and moving expenses.

Our two cards add up to $3K to $4K each month, paid off each month. We like the cash back on the cards. Appreciate the mediation the cards provide if there are problems with stores or service providers.

Quote:

Originally Posted by Bikerdude

I try to charge as much (of every day expenses) as I can each month. I always pay the balance and never incur a finance charge. I benefit greatly from the rewards and other card perks. I probably average $1500 to $2000 per month. I would never consider using cash.

What they said. (Particularly the "never consider cash" statement.)

We average around $3,000 a month.

__________________"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu

I think credit cards are the biggest budget busting device in the world.

I think the biggest budget busting device in the world is the television. I've often told DW and DD that the reason they buy stuff and I don't is that they watch commercials. Of course, I'm usually saying that in response to their annoyed comments due to my channel flipping with the remote. But I stand by my claim. I don't watch commercials so I'm not under constant pressure to "improve my life", which I would accomplish by running out and buying something I don't need with my CC.

__________________"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam ClemensDW and I - FIREd at 50 (7/06), living off assets

I think the biggest budget busting device in the world is the television. I've often told DW and DD that the reason they buy stuff and I don't is that they watch commercials. Of course, I'm usually saying that in response to their annoyed comments due to my channel flipping with the remote. But I stand by my claim. I don't watch commercials so I'm not under constant pressure to "improve my life", which I would accomplish by running out and buying something I don't need with my CC.

I believe you are right. You can't covet what you haven't heard of. The science and technology of persuasion is very advanced. We may think we have resistance to it, but for the most part our resistance is weak. Best to avoid advertising altogether. And that is what a DVR is for.

Ha

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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams

My sister and her husband have never owned a TV. They are the least consumer oriented people I know so you guys maybe on to something.

Fortunately for my fellow marketers, the internet has come along providing wonderful and exciting opportunities for business to make consumer aware of fabulous new goods and services that will make their life richer and more complete. Thanks to credit card all of these can be obtained painlessly just by running your card through the reader or clicking the buy it now button on many websites.

We are on the high end, I guess, usually between 3-4K per month but for the past year (which involved a couple of moves and rather extensive home repairs) we were above 5K every month. It's nice to see the numbers finally dropping! We do put pretty much everything we can on the CC and pay in full each month.

I agree that spending with plastic feels less "real" than paying cash. So if we needed to cut expenses I would be inclined to go the cash route.

So if we needed to cut expenses I would be inclined to go the cash route.

I find writing (virtually, of course) that $3,000 check to be incentive enough to control spending.

__________________

__________________"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu

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